Fast food coffee outstripping "traditional" coffee shops

Specialist coffee shops are facing competition from fast food outlets selling high quality cappuccinos and lattes as new figures show that fast food restaurants have boosted coffee servings three times faster than mainstream coffee shops since 2008.

Fast food outlets and sandwich shops are becoming more popular places to drink coffee.

Data from market research firm NPD showed that specialist coffee chains have increased their individual coffee servings by 21 per cent in the past nine years. Meanwhile, fast food restaurants and sandwich shops - otherwise known as “quick-service restaurants” or QSR which are better known for serving burgers, chicken sandwiches or bakery products – have increased their sales of coffee three times faster, at 63 per cent.

Pubs have also realised the importance of coffee and have increased servings by 18 per cent, while the firm’s report warned that customers are increasingly turning towards independent cafes for their regular cup of coffee, rather than the well-known chains such as Starbucks, Costa or Caffe Nero.

Cyril Lavenant, foodservice director UK at the NPD Group, said the specialists must “wake up and smell the coffee” if they are to retain market share.

However, despite the growing competition, coffee shops have maintained market share to provide some 41 per cent of coffee servings in Britain’s QSR sector, a similar level to recent years. Britain’s high street coffee outlets now account for six per cent of the visits of the entire British food service industry.

Mr Lavenant said: “Consumers can grab a coffee anywhere, so the message for the specialist coffee shops is that they must stand out to compete. “Britain’s coffee market is highly competitive, with specialist outlets not just competing against each other but also taking on the high street QSR brands. Quality coffee is now available in a huge variety of locations – fast-food restaurants, sandwich shops, bakeries, supermarkets and convenience stores, high street retailers, tourist attractions, and of course petrol stations.”

He added: “Coffee shop chains tend to look alike and have a similar menu and ambience. If there were no branding outside or inside the shops, it would be difficult for consumers to know for sure which outlet they were in. Some of the new, independent coffee businesses are adopting a fresh approach with brighter, sharper interiors, a more inviting atmosphere and appetising menu boards.”